Commentary: VISIT FLORIDA budget cuts are shortsighted

The Florida House of Representatives’ vote March 10 to drastically cut VISIT FLORIDA’s budget is a measure that unnecessarily hurts our state economy and the workers and taxpayers benefiting from its success.

Tourism, as an industry, is one of the pillars that holds our state economy up and allows for its upward expansion. The growth the industry -- and, in turn, the economy -- has seen over the last six years provides a window into potential success and a glimpse into the dangers of compromising one of the tools that will create it.

According to the Florida Office of Economic and Demographic Research, for every dollar VISIT FLORIDA spends, the state receives $3.20 in return. That type of return led to the $108.8 billion in visitor spending, $11.3 billion in tax revenue and $1.4 million in tourism jobs produced in 2015, according to the Miami Herald.

The state also has seen a steady rise in visitors, with the annual number increasing from 82 million to 112.8 million over the last seven years (2009-2016). In addition, VISIT FLORIDA’s targeted and aggressive marketing strategies have helped the state weather such tourism obstacles as the BP oil spill, the Zika outbreak, Hurricane Matthew and various global economic fluctuations.

In order to effectively market Florida, stabilize consumer confidence and create demand, VISIT FLORIDA needs an appropriate operating budget.

The House bill would cut VISIT FLORIDA’s budget by two-thirds, which means taking a successful program from a budget of $78 million to $25 million. That, on the face of it, may sound like fiscally responsible governing, especially when adding tax breaks and new spending priorities to the deal. But don’t be fooled. If VISIT FLORIDA’s budget were reduced by two-thirds, then we would see two-thirds less in visitor spending and two-thirds less in tax revenue, which would raise our taxes and erase the likelihood of future balanced budgets.

House backers of the bill are saying that $3.8 billion in tax revenue (plus $53 million in savings, don’t forget that) is better than $11.3 billion in tax revenue. Now, I am not a mathematician, but I feel confident in telling you it’s not. It’s not better for businesses, it’s not better for workers, it’s not better for other necessary government programs and it’s not better for the future of this state.

I am, however, the CEO of Waramaug Hospitality, an asset management firm that owns hotel properties in Bonita Springs, Daytona Beach, Maitland, Orlando, Plantation and Tampa. Therefore, I understand the ripple effect a cut of this type would impose on the tourism industry and the state economy.

In 1993, Colorado decided to obliterate its tourism marketing operation and two years later it experienced a 30 percent decrease in travelers and a loss of $1.4 billion in annual revenue. Because of decisions like that and our steadfast commitment to advertising this state’s unique features, we’re not in competition with Colorado anymore, but we are competing with California and Texas for our rightful share of domestic and international travelers. Right now, given our comparative budget, we are winning.

Let’s not give ourselves over to losing policies. Let’s continue our economic progress and secure a better economic future.

Waramaug Hospitality has a portfolio of 43 hotels throughout the United States.

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